Dpm Metals Inc. · TSX:DPM
Dpm Metals — Dundee Precious Metals — Denver Gold Forum 2009
26 slides from Dpm Metals's conference presentation, Sep 14, 2009
Slide 1: Denver Gold Forum
Denver Gold Forum September 14 14, 2009 www.dundeeprecious.com
Slide 2: Forward-Looking Statements
FORWARD–LOOKING STATEMENTS This presentation contains “forward-looking information” or "forward-looking statements" that involve a number of risks and uncertainties. Forward-looking information and forward-looking statements include, but are not limited to, statements with respect to the future pric
Slide 3: DPM Snapshot
DPM SNAPSHOT DPM – TSX (Sept 10, 2009): C$2.79 Market Cap (Sept 10, 2009): C$270M Shares Outstanding: g 97.5M At June 30, 2009: Cash and Short Term Investments: C$75M Plus Restricted Cash: C$7M $ Plus Marketable Securities: C$18M Total Debt: C$23M Debt to Total Capitalization: 4.8% Institutional Sha
Slide 4: DPM Properties
DPM PROPERTIES ¾ Chelopech gold/copper underground mine, Bulgaria ¾ Deno copper/gold/zinc underground mine, Kapan, Armenia ¾ Krumovgrad feasibility stage gold project, Bulgaria ¾ Serbian exploration properties (gold (gold, copper copper, molybdenum molybdenum, rhenium) 3
Slide 5: Corporate Highlights – YTD 2009
CORPORATE HIGHLIGHTS – YTD 2009 ¾ Obtained IPPC operating permit for Chelopech metals plant ¾ Obtained Krumovgrad Commercial Discovery Certificate and restarted EIA process ¾ Commenced Chelopech mine/mill expansion to 2 2.0 0 mtpa ¾ Extension of Chelopech concentrate sales contract to 2020 (LOM) ¾ R
Slide 6: Financial Highlights: H1 2009 vs H1 2008
FINANCIAL HIGHLIGHTS: H1 2009 vs H1 2008 Maintaining strong cash / liquidity position is priority Cdn$ millions H1 H1 except per share amounts 2009 2008 Gross profit from mining operations (a) (b) $ 13.1 $ 21.8 Gross profit excluding Deno redevelopment project $ 19.1 $ 29.6 Net loss $ (2.8) $ (5.7)
Slide 7: Chelopech Mine, Bulgaria
CHELOPECH MINE, BULGARIA ¾ From underdeveloped to world class mine ¾ Largest underground gold/copper mine in Europe ¾ Long life cash flow producer ¾ Potential P t ti l tto significantly i ifi tl increase resource ¾ Two parallel expansion initiatives underway 6
Slide 8: Corporate Social Responsibility and HSE Standards at Work
CORPORATE SOCIAL RESPONSIBILITY AND HSE STANDARDS AT WORK ¾ Bulgarian and European environmental award winner ¾ Community initiatives support English language school, hospitals, technical schools and universities and many other local community projects ¾ Environmental standards meet or exceed EU sta
Slide 9: Chelopech H1 2009 operating improvements
¾ 19% iincrease iin ore processed d over H1 2008 d due tto iincreased d mine productivity and stope availability ¾ 35% increase c ease in co concentrate ce t ate p production oduct o oover e H1 2008 008 - 2009 009 production expected to exceed 67,000 tonnes (2008 – 54,669 tonnes) ¾ 13% reduction in
Slide 10: Chelopech - Mine and Mill Operations
CHELOPECH - MINE AND MILL OPERATIONS Ore Processed Gold Production (000’ tonnes per year) (000’ oz) 71 75 71 953 913 901 852 57 51 501 2005 2006 2007 2008 H1 2009 2005 2006 2007 2008 H1 2009 Copper Production EBITDA (lbs in millions) (in US$ millions) 57.8 57.7 24.6 25.4 23.6 19.9 28.8 22.8 12.9 19.
Slide 11: Chelopech Expansion Project
CHELOPECH EXPANSION PROJECT: (1) Mine/Mill Expansion; and (2) Metal Processing Facility (1) Mine/Mill Expansion ¾ Expand mine and upgrade mill to 2.0 mtpa (Cost ~US$90M) ¾ Concentrate sales secured to 2020 (LOM) ¾ Construction permits for SAG mill and concentrator expansion received i d andd work k
Slide 12: Project Implementation Flexibility
PROJECT IMPLEMENTATION FLEXIBILITY ¾ Smelter Agreement g allows mine to be developed p before MPF. Contract to sell up to 120,000 tonnes of concentrate/year from 2011 to 2013; Up to 140,000 tonnes from 2014 - 2020 (LOM) ¾ Of US$216M ini capital, it l approximately i t l US$90M covers mine i and d mi
Slide 13: Chelopech Mine: Production
CHELOPECH MINE: PRODUCTION Actual Annualized H1 2009 2009 Expanded(1) Deliveries Concentrate (tonnes): 34,258 68,516 150,000 Gold (oz) (2) 45,619 91,238 Copper (M lbs) (2) 11.7 23.4 Pi Primary M Metal: t l Gold (oz) 139,568 Copper (M lbs) 47.9 Cash Costs/Tonne of Ore Processed (US$) Mine/mill - prod
Slide 14: Deno Gold: Kapan Mine, Armenia
DENO GOLD: KAPAN MINE, ARMENIA ¾ Mine/mill restarted April 2009 ¾ DPM drilling d illi confirmed fi d historical hi t i l R Russian i results, Inferred Resource defined ¾ New License Agreement to 2032 ¾ New operating plan implemented ¾ 40% reduction in cash costs (Q2) ¾ 17% increase in concentrate pr
Slide 15: Deno Gold: Development Plan
DENO GOLD: DEVELOPMENT PLAN ¾ Restart underground operations (April 2009) ¾ Proof of Open Pit Concept • Reserve evaluation ¾ Expand underground mine and mill rate from 400,000 to 600,000 tonnes per annum ¾ Drill off open pit from cash flow generated from underground mine expansion ¾ Evaluate all fin
Slide 16: Krumovgrad Gold Project, Bulgaria
KRUMOVGRAD GOLD PROJECT, BULGARIA ¾ Potential low cost gold producer ¾ Excellent economics (based on 2005 DFS)) ¾ 5 million tonnes Measured and Indicated Resource at 5 g/t gold ¾ Future production rate estimated at 150,000 oz gold/year for first four years (3:1 strip ratio) ¾ Good exploration potent
Slide 17: Krumovgrad – Project Update
KRUMOVGRAD – PROJECT UPDATE ¾ EIA approval process restarted December 2008 ¾ Commercial Discovery Certificate issued Sept 2009, the prerequisite for conversion to a mining concession ¾ Positive Natura 2000 Compatibility Assessment Report prepared with certain amendments ¾ Currently reviewing process
Slide 18: Serbian Assets: Pursuing Strategic Opportunities
SERBIAN ASSETS: Pursuing Strategic Opportunities to Advance Projects j and Maximize Value Coka Rakita Au Porphyry 47m att 2 47 2.15g/t 15 /t A Au 116m at 1.15g/t Au Coka Kuruga HS Epithermal 25km Limestone Hosted Au mineralization i li ti Kraku Pester Au mineralization 63.5m at 1.5g/t Au incl. 28.3m
Slide 19: Our Plans Going Forward
OUR PLANS GOING FORWARD ¾ Continue focused capital spending ¾ Continued company-wide cost savings initiatives ¾ Further increase efficiencies and cash flow at Chelopech ¾ Continue Chelopech mine/mill production ramp-up ¾ Further advance Krumovgrad project ¾ Develop expansion plan for Deno Gold opera
Slide 20: DPM – Positioned for Growth
DPM – POSITIONED FOR GROWTH Annual Gold Company Production (oz) Market Cap (US$) Dundee Precious Metals 100,000 $250 million Aurizon 153,000 $700 million Alamos 150,000 - 250,000 $950 million Eldorado 338,000 $4.1 billion Gammon Gold 356,000 $830 million Red Back 400,000 $2.4 billion After Assets ar
Slide 21: Reserve Slides
RESERVE SLIDES 20
Slide 22: Chelopech Mine: Summary of Updated Feasibility Study
CHELOPECH MINE: Summary y of Updated p Feasibility y Study y ((March ‘09)) Calculated at US$800/oz Au and US$1.75/lb Cu Objective ¾ Increase production to 2.0 mtpa plus ¾ POX Optimum environmental solution Cost and return ¾ Capital cost: US$216M ¾ IRR after tax: 27.7 ¾ Payback period: 2.8 years ¾ Av
Slide 23: Chelopech Mine: Mineral Resources and Mineral Reserves
CHELOPECH MINE: Mineral Resources and Mineral Reserves Chelopech Mineral Reserves – Sept. 2008 Gold Copper Tonnes G d Grade P Pounds d Category (M) Grade (g/t) Ounces (M) (%) (M) Proven 11.68 3.89 1.46 1.42 366.03 Probable 12.69 3.53 1.44 1.15 321.86 Total 24.37 3.70 2.90 1.28 687.89 Chelopech Miner
Slide 24: Deno Gold: Shahumyan Mineral Resource
DENO GOLD: Shahumyan Mineral Resource Shahumyan Deposit – September 2008 Inferred Mineral Resource – Ordinary Kriging Estimate Gold Cutoff Tonnage Equiv. Copper Gold Silver Zinc (AuE - g/t) (Mt) (g/t) (%) (g/t) (g/t) (%) 0.50 335.8 1.19 0.11 0.48 8.39 0.41 0.75 226.5 1.47 0.13 0.61 10.32 0.49 1 00 1
Slide 25: Krumovgrad: Feasibility Study (July '05)
KRUMOVGRAD: Feasibility Study (July ‘05) To be updated p once permit p granted g Calculated at US$430/oz Au What has changed? ¾ Capital cost: US$75M ¾ IRR after tax: 39% ¾ Higher costs ¾ Payback period after tax: 1.9 years ¾ Higher prices ¾ Production: 150,000 oz Au/year ¾ Better economics ffor th t
Slide 26: Appendix: Chelopech - Cash Cost Reconciliation
APPENDIX: CHELOPECH - Cash Cost Reconciliation H1 2009 US$ Actual Cost of Sales: $ 33,830 Less amortization (6,083) Less reclamation and other costs (800) Plus other charges, including freight 16,062 Less by-product credits (22,235) Cash cost of sales after by-product credits $ 20,774 Gold oz (payab